Sangoma Sees Higher Revenue during Second Quarter

By Ed Silverstein
TMCnet Contributor

Sangoma is a software and hardware provider whose products are used with IP communications for telecom and datacom applications. Its offerings – which are found in PBX (News - Alert), IVR, contact center and data-communication applications – include data cards, voice cards, gateways and connectivity software. The products are used by service providers, carriers, enterprises, small- and medium-sized businesses, and original equipment manufacturers.

In the recent quarter, which ended on Dec. 31, the company’s net income edged up slightly at $0.22 million. That compares to the company’s net loss of $0.25 million for the second quarter a year earlier. On the other hand, revenue at the Ontario-based firm jumped 32 percent to $3.63 million, when comparing this quarter to the same quarter in the prior year.

Sangoma, like some other companies in the sector, is seeing recent revenue growth. "I'm most pleased to see solid revenue growth this quarter, especially with that growth all coming from new products, while sales of legacy products were quite stable as well,” Bill Wignall, president and CEO of Sangoma, said in a statement. “This quarter's result reflects Sangoma's focus on growth and we believe that our strategy of developing new products, for sales to new customer segments in new geographies, is the way to deliver that growth."

In addition, Kathleen Reed, Sangoma’s marketing director, told TMCnet’s Erik Linask (News - Alert) during ITEXPO East 2014, that the company is still focusing on the cards market, but also has a new line of session border controllers, as well as products for Microsoft (News - Alert) Lync. “We’re taking that extra piece in the quality of engineering that we had in our cards and bringing it to the system-level products,” Reed said. To see the entire interview, please click here.

In November, Sangoma said its sales in Q1 were $2.74 million, down from $3.02 million in Q1 of the prior year, according to a company statement.

"I indicated last quarter that we typically experience greater variability in sales these days, depending on timing of significant orders, as we target larger customers with longer sales cycles," Wignall said in a statement earlier this month.

Edited by Cassandra Tucker